A.M. Best Assigns Credit Ratings to LIG Insurance (China) Co Ltd

HONG KONG--()--A.M. Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to LIG Insurance (China) Co Ltd (LIG China) (China). The outlook assigned to these Credit Ratings (ratings) is stable.

LIG China is a property/casualty insurer in China, established in 2009. It is wholly owned by KB Insurance Co., Ltd. (KB Insurance), a Korea-based company that is a wholly owned subsidiary of KB Financial Group Inc. Headquartered in Jiangsu with a branch office in Guangdong, LIG China focuses on commercial property, liability and credit lines of business.

The ratings reflect LIG China’s balance sheet strength, which A.M. Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. The ratings also reflect the implicit support the company receives from its parent, KB Insurance.

LIG China’s very strong balance sheet strength is supported by risk-adjusted capitalization being at the strongest level and by very low underwriting leverage relative to its peers. Overall operating performance is adequate, underpinned by a stable stream of interest income that is significant in size compared with its net earned premium. The company occupies a niche market by focusing on servicing Korean companies that operate in China; LIG China has a competitive advantage in this market due to its long-term relationships with those companies.

Offsetting rating factors include a high dependency on reinsurance and a high management expense ratio due to its small premium base. The company’s niche market also limits its future business growth.

Positive rating actions could occur if LIG China continues to demonstrate an improving business profile and favorable and stable operating results, while maintaining its solid risk-adjusted capitalization.

Negative rating actions could occur if there is significant deterioration in the company’s operating performance or if there is a substantial decline in its risk-adjusted capitalization.

Ratings are communicated to rated entities prior to publication. Unless stated otherwise, the ratings were not amended subsequent to that communication.

This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.

A.M. Best is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

A.M. Best
Christie Lee, +852-2827-3413
Director, Analytics
christie.lee@ambest.com
or
John Andre, +1-908-439-2200, ext. 5619
Managing Director, Analytics
john.andre@ambest.com
or
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com

Contacts

A.M. Best
Christie Lee, +852-2827-3413
Director, Analytics
christie.lee@ambest.com
or
John Andre, +1-908-439-2200, ext. 5619
Managing Director, Analytics
john.andre@ambest.com
or
Christopher Sharkey, +1-908-439-2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1-908-439-2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com